I have a secured credit card with CapitalOne… its pretty old, and I had actually forgotten it started as a secured (after some time they just made it a regular card with a high limit, but retained my initial small deposit) until I was looking just earlier today online at my statement.
This card is the next one on my list to be paid off and closed, so that was why I was looking intently.
Anywho – after realizing it was a secured card (meaning I paid CapitalOne money to start the account) I was wondering if the amount of my secured deposit might just cover the remaining balance and effectively zero out and pay this one off.
It does and it doesn’t…
So what they told me is yes I can close the card today and they will apply the deposit amount to the remaining balance, but not until AFTER it is closed. Meaning they will report to the credit bureaus it was closed with a balance remaining due (which may affect my score).
My other option is to pay them the full amount as planned, then once the card is at 0 balance close the account, and they’ll mail me a check for my deposit.
Its apples to apples… but I have opted to just play their silly game. Closing this account will probably lower my score a little bit anyhow, and I don’t want to lower it so much that my car insurance rate goes up or something else silly and illogical but yet plausible.
If any of you have secured cards, secured loans, etc – know that you need to pay off in full, then get your deposit refund for it not to show a balance due on your credit report!